REG - OFGEM - TESLA WINS ELECTRICITY SUPPLY LICENCE IN BRITAIN

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RNS Number : 3053W  OFGEM  12 March 2026

TESLA ENERGY VENTURES LIMITED GRANTED ELECTRICITY SUPPLY LICENCE FOR GREAT
BRITAIN

Tesla Energy Ventures Limited has been granted a licence authorising it to
supply electricity to domestic and non-domestic consumers in Great Britain.

Ofgem confirmed today (Thursday 12(th) March) that the licence has been
formally approved by its governing body, the Gas and Electricity Markets
Authority, under section 6(1)(d) of the Electricity Act 1989.

It follows a robust application, assessment and approval process conducted
over seven months, from July 2025 to March 2026, in line with statutory
requirements.

The licence took effect at 1800hrs on Wednesday 11(th) March when the licensee
was informed of this decision. The instrument has now been entered into
Ofgem's Electronic Public Register, (https://epr.ofgem.gov.uk/) which records
all licences granted, revoked or modified and makes those instruments publicly
available.

As a licensed supplier, Tesla Energy Ventures Limited must now comply with all
relevant Standard Licence Conditions
(https://epr.ofgem.gov.uk/c/9wgWVKeHRymQ3pBbiptyqA/p/0196c209-4e4c-4e2b-92ae-525b634f2f51/wvp/448ed85b-b4ca-40a6-b04c-bda6335e78c2)
, including obligations concerning treating customers fairly, financial
responsibility, operational capability, billing, information provision and
consumer protection.

Ofgem will monitor compliance and may use its enforcement powers under the
Electricity Act 1989 and the Standard Licence Conditions, including issuing
directions, imposing financial penalties or modifying licence conditions where
necessary.

Tesla Motors Limited, a separate company incorporated in England and Wales,
was granted an electricity generation licence in June 2020. This licence was
not relevant to Tesla Energy Ventures Limited's application or Ofgem's
assessment or approval.

The new licence applies to electricity supply activities in Great Britain
only.

Background

Ofgem is Great Britain's independent energy regulator, accountable to
Parliament. The licence for Tesla Energy Ventures has been granted solely by
the Gas and Electricity Markets Authority (GEMA) under the Electricity Act
1989, Utilities Act 2000 and relevant licensing guidance.

GEMA applies its statutory duties in all supplier decisions: to protect the
interests of existing and future consumers, including through promoting
effective competition wherever appropriate, and to have regard to the need for
licence holders to finance their activities.

The decision reflects this framework and was taken independently of
Government.

Timeline

·    18th July 2025: Tesla Energy Ventures Limited published a notice of
application for an electricity supply licence in accordance with section 6A(3)
of the Electricity Act 1989.

·    25th July 2025: Ofgem published the notice of application and opened
a statutory consultation
(https://www.ofgem.gov.uk/publications/tesla-energy-ventures-limited-notice-application-electricity-supply-licence)
which applies to all applications.

·    22nd August 2025: consultation closed. All representations received
were reviewed and considered by Ofgem as part of the application process.

·    up to March 2026: Ofgem assessed the application of Tesla Energy
Ventures Limited's operational capability, financial resilience, governance
and ability to comply with its ongoing obligations as an electricity supplier.
The same regulatory criteria and assessment frameworks are used for all
applicants for an electricity supply licence.

Assessment

·    Ofgem's assessment includes detailed consideration of the applicant's
operational capability, financial arrangements, governance and compliance
frameworks and risk management arrangements. It also includes assessing
applicants' ability to comply with Standard Licence Conditions
(https://www.ofgem.gov.uk/sites/default/files/2025-08/Electricity-Supply-Standard-Consolidated-Licence-Conditions.pdf)
on an ongoing basis. These included:

·    SLC 4A - Operational Capability: SLC 4A requires a supplier to have
the systems, staff, governance and operational infrastructure needed to run an
energy business safely and reliably - including billing, customer‑service
and complaints‑handling functions. Its purpose is simple: to ensure the
company can operate competently from Day One and always meet all consumer and
market obligations.

 

·    SLC 4B - Financial Responsibility: SLC 4B requires a supplier to
maintain strong, independent financial resilience - with adequate capital,
liquidity and risk management - and expressly prohibits reliance on unsuitable
cross‑subsidy from related companies. It exists to ensure suppliers can
withstand shocks without exposing consumers or the system to financial risk.

 

·    SLC 4C - Ongoing Fit and Proper Requirement: SLC 4C places a
continuous duty on suppliers to ensure that anyone in a Significant Managerial
Responsibility or Influence (SMRI) role is fit and proper, supported by proper
governance and regular checks. Ofgem may probe concerns through SLC 5
information requests and can order the removal of senior individuals where
conduct, competence or integrity fails to meet the required standard.

Licence Conditions

The electricity supply licence is subject to the Standard Licence Conditions
(SLCs) applicable to all electricity suppliers. These impose legally binding
obligations including:

·    Obligations to treat consumers fairly and comply with consumer
protection requirements;

·    Requirements relating to financial responsibility; resilience and
reporting;

·    Obligations to comply with relevant industry codes, settlement
arrangements and market rules

·    Requirements to provide information to Ofgem and other bodies as
required for regulatory oversight; and

·    Obligations to maintain effective governance, systems and control

Failure to comply with licence conditions may result in enforcement action,
including the imposition of financial penalties or licence revocation.

Fit and Proper Requirements

All licensed electricity suppliers have an ongoing legal duty under SLC 4A to
take all reasonable steps to ensure that they, and their Significant Managers
with Responsibility and Influence (SMRI), remain fit and proper to hold a
licence. This is subject to Ofgem's regulatory oversight and enforcement
powers.

SLC 4C sets out factors for a supplier and its executives to be fit and proper
to hold a licence. These may include being subject to relevant criminal
convictions; insolvency or bankruptcy proceedings; director disqualifications;
serious regulatory or enforcement action; or other conduct which may
reasonably call into question their honesty, integrity, competence or
financial soundness.

Ofgem does not assess or license individuals. The legal responsibility for
compliance lies with the licensee.

Corporate information

Tesla Energy Ventures Limited
(https://find-and-update.company-information.service.gov.uk/company/14676544)
is incorporated in England and Wales. Its ultimate parent undertaking and
controlling party is Tesla, Inc incorporated in the United States of America.

Tesla Motors Limited, a separate company also incorporated in England and
Wales, was granted an electricity generation licence in June 2020
(https://www.ofgem.gov.uk/publications/tesla-motors-limited-notice-grant-electricity-generation-licence)
.

This licence formed no part of either Tesla Energy Ventures Limited's
application or Ofgem's assessment or approval.

FOR ALL MEDIA QUERIES EMAIL PRESS@OFGEM.GOV.UK (mailto:PRESS@OFGEM.GOV.UK)

 

 

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